On Monday, during South Korean President Moon Jae-visit to Australia, the two countries signed a nearly $700 million defense contract. Hanwha, a South Korean military business, will supply the Australian army with artillery weaponry, supply vehicles, and radar under the terms of the arrangement.
According to local media, the transaction, worth 1 billion Australian dollars ($717 million, €635 million), is Australia's most prominent defense contract with an Asian country.
Increasing the effectiveness of diplomacy
"The contract that we have signed today, I think, speaks volumes about what we believe are the capabilities of the Korean defense industry," Australian Prime Minister Scott Morrison said. The new defense contract will generate over 300 employment in Australia, where Hanwha has a subsidiary.
The agreement was signed while Moon was in the Australian Capital Territory for a four-day visit to commemorate the 60th anniversary of the two nations' diplomatic relations. The two presidents decided to elevate South Korea and Australia's formal ties to a "comprehensive strategic partnership."
There will be no diplomatic boycott of the Beijing Olympics.
Moon placed a premium on strengthening connections with China during his time in Australia, ruling out joining the United States' diplomatic boycott of the 2022 Winter Olympics in Beijing.
"We need the constructive efforts of China to enable denuclearization of DPRK (North Korea)," Moon added, referring to Beijing's role in supporting regional peace.
However, the defense contract comes when relations between Australia and China are at an all-time high. Canberra's recently disclosed deal with the US and Britain to develop nuclear-powered submarines drew widespread condemnation from Beijing.
Progression toward a proclamation of war's end
Additionally, the South Korean president stated that the US, China, and North Korea all agreed to end the Korean War and reaffirmed Seoul's commitment to it.
He stated that a proclamation would assist in reviving stalled discussions between neighboring countries and between North Korea and the United States.
Moon is the first foreign head of state to visit Australia since the country removed pandemic-related border restrictions. During his visit, the two countries signed a series of agreements on technology and military cooperation.
